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Tax after Bereavement

KRB2725
Posts: 685 Forumite

in Cutting tax
I have recently been widowed, I have three school age children.
I’ve been awarded a survivors monthly pension payment. This is not a large amount but still welcome now that we have lost a salary.
Is it right that this pension payment is classed as earned income of mine and os there any allowance in the child benefit rules if your income exceeds the single person salary limit because of bereavement?
I’ve been awarded a survivors monthly pension payment. This is not a large amount but still welcome now that we have lost a salary.
Is it right that this pension payment is classed as earned income of mine and os there any allowance in the child benefit rules if your income exceeds the single person salary limit because of bereavement?
It’s a small pension but if I could be paid it without 40% tax it would make a difference to me, I have just started a new job and am just in the higher tax bracket. I won’t know until the end of the year if I will get a bonus or not, if I do then the pension payment would also tip me over the £60k child benefit threshold (my own income even with bonus wouldn’t).
I know I could reduce my income with pension contributions but maximising monthly income is my priority. My boys are growing and expensive to feed and clothe.
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Comments
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So sorry for the loss and loss husband. All pension income is taxable if your total income exceeds the personal allowance. Unfortunately if you are already a 40% tax payer it will be taxed at that rate.1
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